Stockholm (HedgeNordic) – Commodities asset manager Svelland Capital has launched the first Gold Exchange-Traded Certificate (ETC) on Oslo Børs, providing Norwegian investors with a pure-play gold investment option. The Gold ETC enables investors to gain exposure to physical gold stored in the vaults of Edmond de Rothschild in Geneva, which previously belonged to the Swiss National Bank.
“The Gold ETC is the first Exchange Traded product quoted on the Oslo Børs and there is much hope from the Børs and investors that Svelland Capital will be able to list more such products in the future,” says Guillaume Salomon, Gold ETC Product Manager at Svelland Capital. The team is also exploring the possibility of launching ETCs offering exposure to silver or electricity. “The Gold ETC offers investors the ability to expose their portfolio to physical gold from as little as one unit, currently priced at NOK 1,665, with just one click,” he elaborates. “This product is highly liquid as the underlying product is spot gold, one of the most liquid markets in the world,” says Salomon, adding that “as such, the market maker of the Gold ETC indicated that he is happy to quote a competitive bid/offer for up to $200 million, subject to normal market conditions.”
“The Gold ETC is the first Exchange Traded product quoted on the Oslo Børs and there is much hope from the Børs and investors that Svelland Capital will be able to list more such products in the future.”
Guillaume Salomon, Gold ETC Product Manager at Svelland Capital.
The certificates, already available on Euronext Amsterdam, have now been officially listed on Oslo Børs. These exchange-traded certificates come in multiple currency denominations on different exchanges and offer flexible redemption options. “This product allows investors to redeem for cash or physical gold bars to a delivery location of choice. Investors need to be able to get their hands on their gold should they so choose to,” considers Norwegian Tor A. Svelland, founder of London-based commodity-focused manager Svelland Capital. The gold can be physically redeemed at the vault in Geneva or delivered in several jurisdictions, such as Norway and other Nordic countries.
“This product allows investors to redeem for cash or physical gold bars to a delivery location of choice. Investors need to be able to get their hands on their gold should they so choose to.”
Tor A. Svelland, founder of Svelland Capital.
Gold is often considered a safe-haven asset that acts as a reliable store of value, generally exhibiting low correlation with traditional asset classes such as equities or bonds. “Gold offers investors a true alternative to standard investments such as bonds and equities,” explains Salomon. “At times when traditional investments struggle – whether due to geopolitical factors, rising trade barriers or heightened inflationary pressures – gold usually strongly outperforms,” he emphasizes. “This asymmetry is very much appreciated by investors in continental Europe, such as in Switzerland or Germany,” notes Salomon. He suggests that a three to five percent allocation in gold can be a sensible addition to many portfolios in the current environment.
“Equally, the Gold ETC offers a two-way market and investors can short sell the product if desired.”
Guillaume Salomon, Gold ETC Product Manager at Svelland Capital.
Svelland Capital’s Gold ETC allows institutional and retail investors to gain spot gold exposure with high liquidity and ease. “Equally, the Gold ETC offers a two-way market and investors can short sell the product if desired,” adds Salomon. The team at Svelland Capital also manages long/short equities- and commodities-focused fund Svelland Global Trading Fund, the best-performing hedge fund in the Nordics in the past five years with an annualized return of 27.3 percent.
Photo by Petter Berntsen NTB Kommunikasjon.
